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Property market looking up for sellers

Despite the latest report from Propstats indicating that sales figures this year to date are essentially flat compared to the first six months of last year, Director of Jawitz Properties, Francois Venter says  he thinks the power buyers have enjoyed over the last few years is slowly starting to shift back to sellers.

“The market is slowly recovering from a price point of view,” says Venter, adding that while demand is up supply is still tight. Sellers are still holding on to their properties to achieve a better price, and Venter feels that the tides may be turning in their favour.

With the news of the Reserve Bank cutting interest rates by 50 basis points, Venter says affordability for buyers will improve.  This will give first time buyers a chance to get a foothold on the property ladder.  It will also enable buyers in general to qualify for larger bonds, which will give sellers the opportunity to achieve higher prices.

In the Western Cape the average time it takes for a home to be sold is 20 weeks, which is longer than the national average of 17 weeks. This confirms that sellers are holding on to their homes for longer in order to get the prices that they want, and as the FNB Property Barometer for the Western Cape states, “seller optimism” comes into play here.

Propstats figures show that the Atlantic Seaboard has enjoyed the most sales activity this year, with over 200 homes sold in the under-R3 million price bracket, which is the most popular price bracket throughout the Western Cape.  The runner up enjoying marginal sales activity higher than that of the first six months is the Western Seaboard, where 56 more units were sold than last year, followed by Constantiaberg, Hout Bay and the South Eastern suburbs.

The luxury market continues to enjoy activity, particularly on the Atlantic Seaboard, with 10 more homes sold over the R10 million mark compared to this time last year. Overall Venter believes that sales are steady and feels confident in the results found in the metropolitan areas of Cape Town. “In 2011, there was just over R10 billion in total property sales, and at present we are on a running total of just over R5 billion, so we are on track.”



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